THE EFFECT OF NON-PERFORMING FINANCING OR LOAN, OPERATION INCOME AND OPERATION EXPENSES, AND FINANCING OR LOAN TO DEPOSIT RATION ON RETURN ON ASSET IN ISLAMIC AND CONVENTIONAL BANK IN INDONESIA

• Main Author: Fathan Mujadidi Haqqoni, Ahmad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46577
• Institution: Institut Teknologi Bandung

Commercial banks also have an important role in the financial system and the economy. As a financial intermediary institution, bank will acting as the middleman between two parties name it depositor and creditor, this also create efficient markets and lowers the cost of conducting business. In other hand this role will exposing the bank to liquidity or possibly insolvency given the possibility of banks runs from depositors and creditors, or deterioration in lending or financing quality, and this will lead to potential spreading to wider financial system or even the economic system as a whole, therefore a major bank industry crisis can be even far worse than business cycle slowdowns. In other hand profitability is one of the major factors effecting the survivability of business. The purpose of this research is for finding the effect of bank performance index on the ROA of Islamic and conventional bank industry. This research are uses an OJK monthly report for the period 2011-2018. Ordinary least square multiple linear regression is used to determine the relationship between variable such as non-performing financing/loan (NPF/L), financing/loan to deposit ratio (F/LDR), operation expenses and operation income ratio (OEOI) to ROA and profit of Islamic and conventional bank. Result from this research are Islamic ROA is affected by log FDR, and AR(1), conventional ROA only affected by OEOI, NPLR, and AR(1)